If demand is unit elastic, revenue
A)and price rise and fall together.
B)rises as price falls.
C)falls as price rises.
D)remains constant as price rises or falls.

Question

Quizplus · Accepted Answer

When demand is unit elastic, a change in price will result in an equal and opposite change in quantity demanded, resulting in no change in total revenue. Therefore, revenue remains constant as price rises or falls.

If Demand Is Unit Elastic, Revenue